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PELL-GEN launches green product
 
American Pellet Supply launches renewable-based fuel pellets, expands production capacity with $4 million in private investment

CARLISLE, Indiana – American Pellet Supply, LLC unveiled and launched its innovative green renewable-based Lil Stoker fuel pellet product in August, expecting to capture a major share of the rapidly growing U.S. fuel pellet industry, according to Michael Myers, president.

Extremely popular in Europe where up to 50% of homes are heated with fuel pellets, fuel pellet use has more than doubled in the United States in the past few years. According to energy experts, the U.S. fuel pellet industry is expected to become a billion-dollar energy sector by the end of the decade for heating residences and businesses.

Major home centers like Lowes and Home Depot have already sold millions of pellet heating appliances, and American Pellet Supply intends to provide the fuel for those appliances, Myers affirmed.

American Pellet Supply's renewable-based product portfolio, which is marketed under the brand name PELL-GEN, has the distinctive advantages of higher BTU output, lower emissions and other benefits. "Because of our products' competitive advantages and the growing market opportunity, we stayed under the industry's radar until we believed we were ready to move aggressively and meet demand," explained Myers.

"We believe that the products manufactured by American Pellet Supply offer Indiana the opportunity to become a major manufacturing center of advanced alternative energy products that are renewable-based," said Jay Hood, a board member.

Hood, who is considered a global expert in advanced manufacturing and holds numerous patents in composites, recognizes Indiana's vulnerability to harmful increases in energy costs. "The chief threat to successful manufacturing operations is a sustained spike in energy costs," Hood explained. "In Indiana, more than 47% of electrical energy is consumed by industrial and manufacturing operations – the products made by American Pellet Supply can both help Hoosiers in a number of ways – these products can help hold the line on energy costs, lower emissions and greenhouse gases, and reduce America's dependency on imported oil."

The company has built up an initial distributor network for PELL-GEN products in Indiana, Illinois and Kentucky. Founded in 2008, American Pellet Supply used its initial manufacturing period to fine-tune its products and demonstrate their superior performance. In the past year American Pellet Supply received more than $4 million in private investments for expansion of its initial 30,000 sq. ft. facility. During that time, the company constructed more than 50,000 sq. ft. of new facilities and purchased more than $1 million in specialized pelletizing and manufacturing equipment.

"This expansion gives us the opportunity to move aggressively into the green alternative fuel sectors and we expect to quickly make a positive impact in the residential and commercial markets," Myers said. Initial sales and market outreach have been strong, he said. "We have a superior product, and we intend to dominate what will soon become a billion-dollar market," Myers emphasized.

American Pellet Supply products enjoy a major competitive advantage, according to Myers. "While most fuel pellets are wood-based and dependent on scrap and waste products from lumber mills and furniture manufacturers, our Lil Stoker product is manufactured from truly renewable and recyclable materials," he explained. "We don't affect the food supply chain, nor are we dependent on any single renewable green element to make our products."

American Pellet Supply manufactures its products using proprietary patent-protected processes that combine shredded corn and soybean waste stocks, as well as shredded dry waste products and other naturally dried grasses and renewable feedstocks.

"Our tag line 'Where Renewables Go to Work' says it all," added Myers.

Similar processes using specially designed pelletizing equipment enable American Pellet Supply to extend its product line. The company has designed and patented a green alternative energy product that can replace or supplement coal in traditionally fired electric power plants.

The power generation product, branded as PELL-GEN's E3 PowerBlend, has already attracted considerable interest from power utility companies across the Midwest and southeast United States. "There are several power companies who would like us to move to Illinois and Ohio and set up our manufacturing operations there," Myers said.

Other American Pellet Supply products based on renewable resources include Handler's Choice, a pelletized equine product that replaces traditional straw bedding, and Nature's Harmony, a pelletized kitty litter product that has superior performance over traditional clay based kitty litter.

"We already have had horse champions and show horse companies endorse Handler’s Choice because of the major benefits it brings to the equine industry, and we see major manufacturers already moving into renewable pellet resources to supplement their mainstream clay kitty litter product lines, so we know for certain that we're in a winning space," said Myers.

American Pellet Supply is already moving about 20 tons of its equine Handler's Choice on a weekly basis. As the newly installed pelletizing equipment comes online over the next few weeks, American Pellet Supply expects to ultimately begin manufacturing about 100 tons per day of its initial product line.

"We're currently seeking an additional $2 million in investments to purchase additional conveyors and equipment so we can reach full capacity with our Carlisle facility," Myers said. "We have strong momentum with our initial products, and we expect to grow rapidly."

About American Pellet Supply Founded in 2008, American Pellet Supply, LLC and its PELL-GEN division are established to provide a variety of green tech products, including alternative strategic fuel production and the innovative manufacturing of renewable-based products. These products come in the form of pellets, briquettes or bricks that best meet or exceed the needs of customers and communities. The company will strive to develop products which are “best in class”, research and implement new technologies relevant to the renewable energy market, and identify the most effective means of operating and sustaining an environmentally friendly business. For more information, please visit www.pell-gen.com. For media inquiries, please contact Michael Snyder at The MEK Group at 317-805-4870 or e-mail.